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Wanli Tire of South China Rubber Tire Co., Ltd.-Innovation Process

In the late 1980s, China showed a prosperous development prospect. In 1988, Guangzhou South China Rubber Tire Co., Ltd. officially obtained the Sino-foreign joint venture approval certificate and obtained the technical license for the annual production of 300,000 sets of passenger and light truck semi-steel radial tires and heavy-duty truck all-steel radial tires. At this time, Hualun Company was born at the good time of the reform and opening up of the motherland. The opening of the country also gave Hualun Company the opportunity to introduce American Firestone technology. At that time, all major domestic tire factories used bias tires as their main products. The introduction of Hualun Company has enabled the Chinese tire industry to have a full range of radial tire production technology. Although only the production technology of some ordinary-sized tires was introduced at that time, it laid the foundation for Hualun Company to have advanced independent technology.

China’s modern industrial system started with the introduction of technology and exploratory development in the 1980s, and experienced the pain of reform and development in the 1990s. The digestion, absorption, application and improvement of imported technology are a key to the success of an enterprise. There are many examples of enterprises losing money and going bankrupt because imported technology cannot be converted into productivity. Hualun Company also faced such troubles. Before 1998, Hualun Company was troubled by product sales difficulties and low profits. By the end of 1997, Hualun Company had accumulated losses of 280 million yuan, with potential losses of more than 100 million yuan. The company Unable to operate normally, it was forced to cease production and was on the verge of bankruptcy.

At that time, the domestic semi-steel radial tire market was restricted by automobile consumption levels. The main market was concentrated in mid- to low-end tires, and the competition among various tire manufacturers was very fierce. The high-end car tire market is mainly in developed countries, with high technology content and high added value. Before 2003, high-end products were monopolized by the top eight international tire groups such as Michelin, and no domestic manufacturer could produce them. What Hualun Company has to do is to vigorously tap internal R&D potential on the basis of introducing Firestone's ordinary tire specification production technology and develop high-tech products with "Wanli" characteristics as soon as possible to enhance the company's presence in domestic and foreign markets. competitiveness, thereby transforming technology into productivity and solving the problems of difficult sales and low profits for enterprises. For the survival and long-term development of Hualun Company, Hualun people have set their sights on the high-end market. Through the absorption, digestion, development, improvement and re-creation of imported technologies, they have gradually embarked on the road of independent technological innovation for the international high-end market. It started producing V-class tires (240 km Sichuan, hour) in 1999. In 2002, it successfully launched 17 and 18” W-class tires (270 km Sichuan, hour). In 2003, it launched 20Y-class tires (300 km Sichuan, hour). , laying the foundation for Hualun's deep development in the field of high-performance car radial tires. Hualun is the first domestic manufacturer to develop and produce high-performance car tires. Currently, among domestic tire companies, it has formed a complete independent base on the basis of imported technology. Hualun is the only company that has innovative systems and product research and development capabilities that are in line with international standards.

Facing the downturn of the company, Hualun people are not discouraged, and the company is united to give it a try. Hualun Company has thus begun a more arduous but passionate road of "turning around losses and escaping difficulties". Starting from internal management, Hualun Company mobilizes the enthusiasm of employees from all aspects, and at the same time concentrates on independent technological innovation. The company shows a good performance. In 2000, Hualun Company turned a profit for the first time, achieving a profit of 1.5522 million yuan, and its sales revenue exceeded 500 million yuan for the first time, making it one of the largest national enterprises.

In 2000, Hualun Company turned a profit. In the last year for the company to achieve the national, provincial and municipal goal of "turning losses and getting out of trouble within three years", Hualun people made reasonable use of this opportunity and launched a series of rectification measures within the company.

In order to give full play to employees' work enthusiasm and creativity, we constantly strengthen team building and organize various types of labor competitions and on-the-job training for many times; we implement secondary accounting in the production workshop to mobilize employees' enthusiasm, and various small inventions and technical improvements have emerged at the historic moment. , saving production costs, and prompting managers and operators at all levels in each production workshop to really care about the products; adding management technology progress awards and employee rationalization suggestion awards to mobilize employees' small inventions and creations to improve and improve their work more effectively ; In terms of employment mechanism, Hualun Company’s employment strategy of “don’t ask how much you know, just ask how much you can do; no matter how much you do, just ask whether the effect is good or not”, is strict in selecting talents, making Hualun a stage where talents gather, and the personnel The classification starts from the three major categories of management, technology, and technicians, so that people can make the best use of their talents, which greatly mobilizes the enthusiasm of talents from all parties; and the innovative concept of "produce a batch, develop a batch, and reserve a batch" makes Hualun Company continues to improve its independent technological innovation capabilities, grasp the trends and directions of industry development, and form the most complete product line in the domestic tire industry, with 10 series and more than 1,200 pattern specifications. At this time, Hualun Company also proposed many new development concepts, such as the working methods of "high standards, strict requirements, refinement, and emphasis on practical results" to further encourage employees to establish a correct work attitude, thereby creating high-quality tires product. On April 19, 2002, Guangzhou South China Rubber Tire Co., Ltd. officially changed its enterprise type from a joint venture company to a domestic-funded enterprise. At the same time, because of Hualun's outstanding performance in independent technological innovation and corporate management, it has received national policy support and enjoyed the debt-for-equity swap policy, which effectively solved the company's previous problem of excessive debt ratio. At this time, Hualun Company was better freed from the shackles and obstacles of development, and could soar more easily in the vast sky of the rubber industry.

The past time is the time for Hualun Company to accumulate strength. After encountering a good development environment, the energy accumulated by Hualun Company for many years finally began to bloom beautifully. The output increased from 1.0733 million units in 1997 to 8 million units in 2007, and the sales revenue increased from 290 million yuan in 1997 to 3 billion yuan in 2007. It has maintained an average annual growth of more than 20% for 10 consecutive years, and its comprehensive strength ranks first in the country. Ranked among the best in the industry. While the company is developing, Hualun Company has been exploring its own development path.

In terms of technology, Hualun Company digested and successfully upgraded the imported Firestone technology, forming a unique "Wanli Technology System" in the national tire industry. In December 2005, Hualun Company was officially approved by the National Development and Reform Commission, the Ministry of Finance, the State Administration of Customs, and the State Administration of Taxation to become a national-level enterprise technology center. In addition, Hualun Company is also a national laboratory (CNAS) and a high-tech enterprise in Guangdong Province. It has formed an independent intellectual property system in high-performance car radial tires, snow pattern tires, run-flat tires and other technologies (14 patented technologies), filling more than 20 domestic design and production gaps, and its technology research and development capabilities are basically in sync with the international advanced level. In 2004, it developed a 22-inch high-performance car radial tire, filling the domestic gap; in July 2005, it developed a 24-inch high-performance car radial tire, becoming the first domestic manufacturer and the sixth manufacturer in the world; in April 2007, it developed It was the first manufacturer in China and the seventh manufacturer in the world to develop 26-inch high-performance car radial tires. In May 2007, it developed run-flat tires, becoming the first manufacturer in China and the tenth manufacturer in the world. In 2008 In May, based on the original technology, Hualun people continued their efforts and developed a 28-inch ultra-high-performance car radial tire, becoming the first in China and the fifth in the world to design and produce tires.

In terms of sales, Hualun Company has gradually developed a strong brand awareness and strives to use the brand to promote sales. In 2004, Wanli brand all-steel radial tires won the title of "China Famous Brand Product"; in 2007, they won the title of "China Famous Brand Product" again. At the same time, Wanli brand radial tires are also Guangdong Province’s famous brand products and Guangdong Province’s famous trademarks.

In foreign markets, Hualun Company started by developing African customers. In 2002, it successfully developed markets in 120 countries and regions including the European market and the American market. The current "Wanli" brand is a highly influential brand in the European and American markets. A strong Chinese tire brand, this is a hard-won achievement for Chinese tire sales. With this remarkable achievement, the "Wanli" brand was rated as an "export brand that the Ministry of Commerce focuses on cultivating and developing" by the Ministry of Commerce. In recent years, "Wanli" tires have attracted the attention of merchants from all over the world at global tire shows such as the Sema Show in Las Vegas, Frankfurt, Germany, and Bologna, Italy, and are known as "China's best tires." In the domestic market, "Wanli" tires, based on its excellent product quality and advanced technical capabilities, have successively cooperated with FAW-Volkswagen, FAW Besturn, FAW Hongqi, FAW Jiefang, Second Automobile Dongfeng, Hainan Mazda, Zhengzhou Nissan, etc. It is supported by well-known automobile manufacturers and has a complete sales network in 32 provinces, municipalities and autonomous regions in China. Hualun Company also promoted the popularity of the Jing brand through a series of large-scale activities. In July 2007, Wanli Tire was named the "2007 Third Pan-Pearl River Delta Automobile Rallying Race" and became the designated special tire for the entire event, which also made it more popular. Multi-professional riders learned about the equally impressive performance of national brands. At the same time, the event also promoted Hualun's "Wanli" brand to consumers in an all-round way, laying a solid foundation for seizing the market in Guangdong and even the entire Pan-Pearl River Delta region. foundation, and also establishes a good social image for the enterprise. In March 2008, the "Guangdong Wanli Celebrity Football Club" supported by Wanli Tire was officially established. The club aims to integrate resources from all sectors of society, use football as a platform and charity as a purpose, and use the influence of Guangdong football celebrities to promote the cultivation of football reserve forces and revitalize Guangdong football.

In terms of corporate culture, a pragmatic and innovative corporate culture has been integrated into the blood of Hualun people. "Being the best tire in China and creating a world-famous brand in China" has become the work goal of the majority of employees. When you are rich, you think about your origins; when you are rich, you think about progress. While developing, Hualun strives to repay the society and assume social responsibilities: donating to build Hope Primary School, donating to out-of-school children, voluntary blood donation, donating money and materials to the Indian Ocean tsunami, 2008 snow disaster, Sichuan earthquake... At present, with the development of social economy and With the rapid development of China's automobile industry, the development of the tire industry has gradually formed a trend of establishing large-scale tire companies with assets as the link and brand as the leader, in order to increase production concentration and enhance competitive advantages.

In order to better seize business opportunities in the tire industry and enhance the company's comprehensive strength, Hualun Company's development is based on its advanced research and development, and its production capacity has also gradually expanded, from 300,000 sets at the beginning of the factory to 1.5 million units in 1999, 3 million units in 2003, 4.5 million units in 2004, 5.5 million units in 2006, and 8 million units in 2007. In 2005, Hualun Company invested in the construction of a new production base, Guangzhou Fengli Rubber Tire Co., Ltd., in Renren Industrial Park, Aotou Town, Conghua City, a city with beautiful scenery. Fengli Company's semi-steel radial tire project of 5 million sets/year will reach production in 2008. The all-steel radial tire project of 4 million sets/year is under preparation and planning. The first phase of the all-steel radial tire project of 2 million sets/year is the first phase of the project. A project of 500,000 lines/year is about to start. According to the company's development plan, it is planned that by around 2012, the two production bases in Panyu and Conghua will develop into a large-scale international tire enterprise with an overall output of over 20 million units and sales revenue of 10 billion yuan in about five years. By then, Hualun Company's development will have a higher and newer platform. Hualun Company is also striving to complete the shareholding reform and go public in 2009, so as to invest in the corporate development plan with a better attitude.